New EU probe into Temu over alleged consumer law breaches

New EU probe into Temu over alleged consumer law breaches

Chinese e-commerce giant Temu is facing enforcement action under EU consumer law, a week after separate proceedings were opened under the Digital Services Act (DSA).

The Consumer Protection Cooperation (CPC) Network of national consumer authorities and the European Commission today notified Temu of a number of practices on its platform that they believe infringe EU consumer law.

The CPC Network directed Temu to bring those practices in line with consumer laws of the European Union.

Temu remains under investigation and was requested to provide further information to the network.

The CPC Network’s action against Temu is led by the competent national authorities of Belgium (Directorate General for Economic Inspection), Germany (Federal Environment Agency) and Ireland (Competition and Consumer Protection Commission), under the coordination of the European Commission.

The CPC Network’s coordinated investigation covers a broad range of practices with which consumers are confronted while shopping on Temu, including such that may mislead consumers or unduly influence their purchasing decisions.

The CPC Network is also investigating whether Temu complies with specific information obligations for online marketplaces under consumer law.

The DSA proceedings announced last week and the CPC Network’s joint enforcement action are complementary to each other, the Commission said.

Temu now has one month to reply to the CPC Network’s findings and propose commitments on how they will address the identified consumer law issues.

Depending on Temu’s reply, the CPC Network may enter a dialogue with the company. If Temu fails to address the concerns raised by the CPC Network, national authorities can take enforcement measures to ensure compliance.

Enforcement measures include the possibility to impose fines based on Temu’s annual turnover in the member states concerned, which is without prejudice to the power of national authorities to take enforcement measures in ongoing proceedings.

VÄ›ra Jourová, the Commission’s vice-president for values and transparency, said: “Ensuring safety of consumers in the EU is a priority for the Commission. Therefore, adherence to our consumer protection standards by the trading companies is non-negotiable.

“The dedication and coordinated efforts of national authorities play a vital role in ensuring a fair and secure market for everyone. We have shared today our concerns with Temu and we urge Temu to promptly bring its practices into full compliance with EU consumer protection rules.”

Didier Reynders, commissioner for justice, added: “All market players targeting consumers in the single market must respect EU consumer laws, no matter if they are established within or outside the Union. This is key to protect consumers in a meaningful way and ensure fair competition.

“I commend national authorities for their co-ordinated action. Temu must now take EU rules seriously and bring its practices into full compliance with EU consumer laws.”

A spokesperson for Temu said: “Temu acknowledges the concerns raised by the European Commission and national consumer authorities and reiterates our commitment to working closely with the relevant regulators to address any issues and ensure compliance with EU laws.

“Although we have gained popularity with many consumers in a relatively short time, we are still a very young platform — less than two years in the EU — and are actively learning and adapting to local requirements.

“We will fully co-operate with this investigation, as we believe that such scrutiny benefits consumers, merchants, and the platform in the long term.”

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